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c) Cash flowJumping Jacks Pty Ltd has provided an extract of their forecasted cash flow and you have prepared the BAS for the September quarter, the payment due as shown on the BAS is $30,000.Extracted forecasted cash flowSeptemberOctoberNovemberDecemberEstimated Closing bank balance$30,000($70,000)($50,000)$10,000Required: Jumping Jack’s Pty Ltd reports and pays GST quarterly. From the above information what wouldyou bring to the attention of your client regarding the payment of this amount?Describe the maincash inflow and outflows that a business might experience.Business Activity Statement, Assessment 1, v1.1Page 30
Task 08 (5 marks) - LCT, WET and FTC Luxury Car TaxLuxury Car Pty Ltd is in the business of selling motor vehicles. A luxury motor vehicle ismade available for sale and is priced initially at $85,200. Based on the 2016/2017 luxury cartax threshold of $75,526and LCT rate of 33%:Required:Calculate:a)the Luxury Car Tax (LCT) amount (1 Mark)b)the new selling price of the vehicle (1 mark)Solution:Luxury car tax (LCT)2016/2017Business Activity Statement, Assessment 1, v1.1Page 31
Luxury car threshold75526Motor vehicle for sale GST inclusive priced at …85200LCT rate33%Amount exceeding threshold (GST inclusive)9674Amount exceeding threshold (GST exclusive) 8794Apply LCT to excluded amount2902Enter whole dollars only at LCT at 1E on BAS SummaryTherefore, new sale price is …88102Wine Equalisation TaxLWS Wine Wholesalers is voluntarily registered for GST and has not made an election to payGST by instalments, hence has chosen to report and pay / claim a refund of GST annually.The tax agents have advised that for the 2016/2017 financial year the business is required tolodge its income tax return by 15thMay 2018. During 2016/2017 it derived ‘assessable dealings’ from the sale of its taxable wine suppliesamounting to $70,404 (GST and WET inclusive) for the quarter.Required:a)Calculate the WET payable (1 Mark)b)When is the WET due date? (1 Mark)Business Activity Statement, Assessment 1, v1.1Page 32
Business Activity Statement, Assessment 1, v1.1Page 33
Fuel Tax CreditWestern Union Landscaping Supplies Pty Ltd mines sand to use in landscaping. They dominate the sand mining industry and have a GST turnover of more than $20 million dollars! Due to this they must report and pay GST monthly and lodge his activity statement electronically. Western Union’s records show that they used $392,000 of diesel at $1.42 per litre and $120,800of unleaded petrol at $1.29 per litre for the business excavations for the month of June 2016. The diesel and unleaded petrol they use in their excavators are eligible for fuel tax credits. The current fuel tax credit rate for mining activities is 40.10 cents per litre. Required:a)Calculate the fuel tax credit Western Union Landscaping Supplies Pty Ltd may claim using the basic ‘constructive method’ calculation. (1 Mark)